Major Apple suppliers in Asia have been cutting their 2019 sales forecasts and some have cited an „extraordinary“ drop in Chinese demand, reports Nikkei.
Taiwan Semiconductor Manufacturing Co (TSMC), which supplies the A-series chips used in the iPhones and other devices, is forecasting a 22 percent drop in revenue for the January to March quarter. TSMC said there was a „sudden drop in demand“ for high-end smartphones, also attributing its revenue decline to the U.S.-China trade war and economic uncertainty.
The same thing goes for Nidec, a company that supplies the vibration motor in the iPhone. Nidec has dropped its full-year profit [...]
Apple is telling its suppliers to cut production on new iPhones by 10 percent over the course of the next three months, reports Nikkei.
Apple made the request of its suppliers late last month, asking them to produce fewer iPhones for the January-March quarter.
This is the second time that Apple has recently cut down on iPhone production, and Nikkei says Apple made the decision prior to issuing its guidance downgrade last week.
The production revision applies to all of Apple’s new iPhone models, including the iPhone XS, XS Max, and XR. „The level of revision is different for each supplier and depends on the product mix they supply,“ an [...]
Two of Apple’s largest suppliers have reported healthy jumps in monthly revenue, suggesting fears of weak iPhone demand may be overblown (via Bloomberg).
Asian firms TSMC and Foxconn (Hon Hai) both posted a 5.6 percent rise in November sales, reversing a recent trend of Apple suppliers reducing production or revenue outlooks to reflect lowering demand for Apple’s smartphones.
Foxconn posted NT$601.4 billion ($19.5 billion) in revenue, a record for the month of November, which puts the iPhone assembler on track for its fastest pace of annual growth in years.
TSMC, maker of Apple’s system-on-chips like the A12 processor, reported [...]
Apple has told iPhone assemblers to halt plans for additional production lines dedicated to the iPhone XR, claimed a new report on Monday.
According to sources cited by the Nikkei Asian Review, Apple has informed Taiwanese smartphone manufacturers Foxconn and Pegatron of the cancelation, which the report said signaled „disappointing demand“ for Apple’s lower cost flagship model, which launched late last month.
„For the Foxconn side, it first prepared nearly 60 assembly lines for Apple’s XR model, but recently uses only around 45 production lines as its top customer said it does not need to manufacture that many by now,“ a [...]